Spotlight

Indian markets are expected to trade with a strong positive bias, supported by a significant geopolitical breakthrough that has substantially improved global risk sentiment. The United States and Iran have reportedly agreed to a deal aimed at halting the conflict that has unsettled the Middle East over the past several months. U.S. President Donald Trump stated that the Strait of Hormuz is expected to reopen following the formal signing of the agreement, marking a major step toward regional de-escalation and reducing concerns over global energy supply disruptions.
 
Crude oil prices have reacted sharply to the development, with prices falling to the $80–81 per barrel range. The decline in energy prices is a significant positive for the Indian economy, as it is expected to lower the country's import bill, ease inflationary pressures, improve corporate profitability, and support the current account balance.  The sharp correction in crude oil prices has also improved the broader macroeconomic outlook, strengthening investor confidence and supporting expectations of improved earnings growth across several sectors. Oil-sensitive sectors such as aviation, oil marketing companies, paints, chemicals, and consumer-focused industries are likely to benefit from the softer crude environment.
  
Overall, market sentiment has turned decisively positive following the reported U.S.–Iran agreement and the sharp decline in crude oil prices. The development represents a major positive catalyst for both global and domestic markets and has the potential to trigger a broad-based relief rally across sectors. However, investors will continue to monitor the formal signing of the agreement and the reopening of the Strait of Hormuz for confirmation that the de-escalation process remains on track. Additionally, while Foreign Institutional Investor (FII) selling has moderated in recent sessions, institutional flows remain an important factor to watch, as sustained foreign participation will be crucial in supporting a stronger and more durable market rally.

Technical view

Nifty 50

Nifty 50 continues to trade with a positive undertone after successfully breaking out of its recent consolidation range and reclaiming key resistance levels. Technically, the 23,800 level remains the immediate resistance area. A sustained move above this zone could further strengthen bullish momentum and pave the way for an advance towards the 24,000 mark, which remains the next significant psychological hurdle for the index.
 
On the downside, the 23,550–23,500 zone is expected to act as an important immediate support area. Holding above this range will be crucial to maintain the ongoing recovery structure and preserve the positive bias. However, a decisive breach below 23,500 could trigger profit booking and lead to a corrective move towards the 23,300 level. Overall, the near-term technical outlook remains cautiously positive, with the recent breakout above key resistance levels supporting further upside potential. However, sustained buying interest and a decisive move above 23,800 will be required to reinforce bullish momentum and support an extension of the recovery trend.

Bank Nifty

Bank Nifty continues to outperform the broader market, supported by strong buying interest in heavyweight banking stocks and improving sentiment across the financial sector. Technically, the 57,000 level remains a crucial immediate resistance area. A sustained breakout above this mark could strengthen bullish momentum further and pave the way for an advance towards the 57,500–57,700 region, which continues to act as the next significant resistance band.
 
On the downside, the 56,500–56,400 zone is expected to serve as an important immediate support area, having previously acted as a resistance zone. Holding above this range will be essential to maintain the positive technical structure and preserve the current recovery momentum. However, a decisive breach below this support band could trigger profit booking and expose the index to a corrective move towards the 56,000–55,800 region. Overall, the near-term outlook for Bank Nifty remains cautiously positive, supported by improving momentum and continued buying interest. However, a sustained move above 57,000 will be required to confirm stronger bullish momentum and support a further extension of the ongoing recovery trend.